Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income before Income Taxes and Noncontrolling Interests

The domestic and foreign components of our income before income taxes and noncontrolling interests are as follows:

	Year Ended December 31,
	2015		2014		2013
	(Millions)
U.S. income before income taxes	$	198	$	130	$	150
Foreign income before income taxes	254		271		194
Income before income taxes and noncontrolling interests	$	452	$	401	$	344

Comparative Analysis of Components of Income Tax Expense

Following is a comparative analysis of the components of income tax expense:

	Year Ended December 31,
	2015			2014			2013
	(Millions)
Current —
U.S. federal	$	64		$	38		$	25
State and local	5			3			4
Foreign	83			92			81
	152			133			110
Deferred —
U.S. federal	(1		)	2			(4		)
State and local	1			7			2
Foreign	(3		)	(11		)	14
	(3		)	(2		)	12
Income tax expense	$	149		$	131		$	122

Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense

Following is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (35 percent for all years presented) to the income tax expense reflected in the statements of income:

	Year Ended December 31,
	2015			2014			2013
	(Millions)
Income tax expense computed at the statutory U.S. federal income tax rate	$	158		$	140		$	120
Increases (reductions) in income tax expense resulting from:
Foreign income taxed at different rates	(15		)	(21		)	(21		)
Taxes on repatriation of dividends	9			4			9
Remeasurement of estimated tax on unremitted earnings	(4		)	—			(17		)
State and local taxes on income, net of U.S. federal income tax benefit	11			8			6
Changes in valuation allowance for tax loss carryforwards and credits	13			12			27
Foreign tax holidays	(7		)	(6		)	(5		)
Investment and R&D tax credits	(26		)	(10		)	(8		)
Foreign earnings subject to U.S. federal income tax	3			7			5
Adjustment of prior years taxes	2			(2		)	(1		)
Impact of tax law changes	—			—			(3		)
Tax contingencies	4			—			6
Other	1			(1		)	4
Income tax expense	$	149		$	131		$	122

Components of Our Net Deferred Tax Assets

The components of our net deferred tax assets were as follows:

	Year Ended December 31,
	2015			2014
	(Millions)
Deferred tax assets —
Tax loss carryforwards:
U.S. federal	$	—		$	—
State	14			15
Foreign	72			75
Tax credit benefits	89			86
Postretirement benefits other than pensions	54			55
Pensions	50			56
Bad debts	2			2
Sales allowances	8			7
Payroll accruals	34			38
Other accruals	55			58
Valuation allowance	(127		)	(139		)
Total deferred tax assets	251			253
Deferred tax liabilities —
Tax over book depreciation	40			51
Total deferred tax liabilities	40			51
Net deferred tax assets	$	211		$	202

Reconciliation of Deferred Taxes to Deferred Taxes Shown In Balance Sheet

Following is a reconciliation of deferred taxes to the deferred taxes shown in the balance sheet:

	Year Ended December 31,
	2015			2014
	(Millions)
Balance Sheet:
Current portion — deferred tax asset	$	—		$	81
Non-current portion — deferred tax asset	218			143
Current portion — deferred tax liability	—			(4		)
Non-current portion — deferred tax liability	(7		)	(18		)
Net deferred tax assets	$	211		$	202

Reconciliation of our Uncertain Tax Positions

A reconciliation of our uncertain tax positions is as follows:

	2015			2014			2013
	(Millions)
Uncertain tax positions —
Balance January 1	$	114		$	115		$	107
Gross increases in tax positions in current period	7			8			15
Gross increases in tax positions in prior period	14			5			—
Gross decreases in tax positions in prior period	(4		)	(5		)	(1		)
Gross decreases — settlements	(1		)	(2		)	—
Gross decreases — statute of limitations expired	(7		)	(7		)	(6		)
Balance December 31	$	123		$	114		$	115

Tax Years Open to Examination in Primary Jurisdictions

We are subject to taxation in the U.S. and various state and foreign jurisdictions. As of December 31, 2015, our tax years open to examination in primary jurisdictions are as follows:

	Open To Tax Year
United States	2000
China	2005
Spain	2003
Canada	2012
Brazil	2010
Mexico	2010
Belgium	2013
Germany	2013
United Kingdom	2013